Q1 your publishing house is about ready to release john

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Q1. Your publishing house is about ready to release John Grisham's newest novel just in time for Holiday giving. You are in charge of pricing decisions. Explain why it is important for you to know whether Grisham is being paid a lump sum of $5 million or whether he gets royalty payments of 25 percent of gross sales before you decide which price to charge. In which case will the book sell the most copies?

Q2. Profit=100Q-5000-0.2Q^2
where q is the quantity of widgets produced

What is the price of widgets?
What is the total cost function?
if output is 200 units what is the variable cost and total cost?
what is the profit maximizing level of output for this producer
will the producer make a positive or negative profit at this level of output

Reference no: EM13354422

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